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"CVP Analysis in Service Companies" Please respond to one of the following: Option 1 Imagine that you are the cost accounting manager and the director of your present or past organization. Management wants your opinion on whether the company should manufacture a new electric car. You informed management that you will need to perform a sensitivity analysis prior to making that decision. Compose a brief report to management explaining the importance of preparing a sensitivity report. Identify two (2) questions the sensitivity analysis should answer. Option 2 Design a situation to demonstrate the impact of fixed costs on output for a service company. Option 3 Discuss how a service company might use target costing to improve their profitability.
mozena corporation has collected the following information after its first year of sales. sales were 1710000 on 114000
Top management, however, declined the tests. Ms. Henley then instructed you, the accountant, not to prorate payroll taxes or rent expense for the rest of the year, but to show them as current expenses in total. In this way, the new product would a..
Dubois Inc. loans money to John Kruk Corporation in the amount of $823,200. Dubois accepts an 8% note due in 6 years with interest payable semiannually.
An article in the Wall Street Journal indicated that companies are selling their receivables at a record rate. Why do companies sell their receivables?
The following FCL Corporation inventory information is available for the year ended December 31:The December 31 ending inventory at cost using the conventional (lower of average cost or market) retail inventory method equals. a. $17,500, b. $20,000,..
express dining inc. edi is a food delivery service which connects consumers with several restaurants. customers call
In each blank next to the following terms, place the identifying letter of its best description.
refer to the following lease amortization schedule. the 10 payments are made annually starting with the inception of
walsh company expects sales of product w to be 60000 units in april 75000 units in may and 70000 units in june. the
Identify the three components of the CPU and explain the role of each.
You plan to buy a $200,000 home. The bank suggests two options: (1) 10% down payment, $100/month PMI for the first 4 years, 30-year mortgage at 6% APR, and (2) 20% down payment, 30-year mortgage at 5% APR. What is the difference in the total mortg..
Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowners insurance policy paid Jacob $7,000 for the stolen computer, Jacobs employer did not reimburse Jacob for any of the remainder of his loses. Jacob..
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